Caring CEO and Founder, Jeff Salter, participated in a panel of home care experts at the November 2022 Home Health Care News’ Home Care Conference. The panel also featured Margaret Haynes, Right at Home CEO, and Ryan Iwamoto, president and co-founder of 24 Hour Home Care.
These leaders discussed current trends in the home care market and how providers can be prepared for the explosive growth of the senior population in coming years.
Senior Population Growth
Salter shared statistics about the expected growth of the senior population, which represents the largest demographic of adults needing home care in the US.
- The growth rate of seniors ages 80+ is expected to increase by 96% by 2030. That increase represents nearly 2.4 million individuals who will need services.
- By 2040, the number of seniors in that age range is projected to reach 5.6 million.
Salter encourages home care companies to evaluate the challenges that they have had to overcome in the last few years and use lessons learned to adapt and get ready for the growth.
Haynes addressed the current burnout among caregivers and other healthcare providers following the height of the COVID-19 pandemic. But despite this burnout, home care companies can't afford to slow down as the number of seniors needing care grows each day.
Finding and retaining caregivers has always been a pain point for home care companies. But with the added levels of complexity in today's workforce, companies must figure out how to balance the wellbeing of their caregivers with the demand for care.
Rising Cost of Services
The panel also highlighted the rising cost of labor with both caregivers and staff. Iwamoto stated that the cost of labor rose from between 20% and 40% in 24 Hour Home Care's California markets. The panelists also noted that the cost of services has risen as well to account for the increased labor costs. However, this can make home care services unattainable for the general population.
As a result, many businesses are facing smaller margins, which is driving out small home care providers and putting financial pressure on franchises.
Salter states, “To see the rate continue to grow the way it has is shocking. Health care is about helping people and helping families. But we’re also in a unique space in the home care side, especially in the franchising world, where we’re about profitability. That’s not the way you’re supposed to talk about a health care business.”
The panelists discussed the role that technology plays to help curb some of those costs. Today, Caring Senior Service has Tendio, a proprietary software to systematize and streamline workflows. But in the future, home care providers could see more integration of AI, fall prevention detection devices, maybe even personal robots.
To learn more about the conference, visit Home Health Care News. And if you'd like to get more insights on how Caring Senior Service is preparing for the future growth of the senior population, reach out to us today. We'd love to share more with you.